Turkish fintech buys SadaPay
Financial institutions could lose much of their revenues to fintechs over the next three to five years. PHOTO: AFP
A renowned Turkish fintech has acquired SadaPay – a growing digital payment platform in Pakistan, expanding its footprint in South Asia and Middle East regions.
SadaPay Founder and CEO Brandon Timinsky confirmed the development to The Express Tribune, saying that Turkiye-based Unicorn Papara had “100% acquired” the Pakistani firm.
Though the Pakistani electronic money institution (EMI) did not disclose the value of the transaction, it said company stakeholders would get shareholding in the Turkish firm.
“It is a very positive outcome that was voted unanimously by SadaPay’s stakeholders. Having share ownership in Papara is very attractive considering it is a highly profitable and fast-growing company nearing its IPO (initial public offering) window.”
Reports suggest Papara bought the EMI at a price ranging between $30 million and $50 million (by allotting shares in the company equivalent to the price). Besides, it will invest another $10 million.
Papara is one of the most successful EMIs in the world. “Their tech stack is remarkable, and they’ve already built every product and service SadaPay would have wanted to launch. By leveraging Papara’s technology and extensive experience, SadaPay will be able to significantly accelerate its growth in Pakistan and Pakistani consumers will have more financial products and services delivered to their cellphones,” SadaPay CEO said. At present, SadaPay offers P2P (person-to-person) digital financial transactions and e-money wallets for consumers and freelancers.
Sharing SadaPay’s story, the CEO said it had been driven by ambition, innovation, and most recently, sheer resilience. “We’ve made a real, tangible impact on the lives of millions and reached a remarkable scale in such a short time. It now processes annual payment volumes of over $1.5 billion and continues to grow organically every month.”
Moreover, it helped spark the financial services revolution in a country with a quarter billion people. “Before us, opening a bank account was a nightmare, customer service was atrocious, simple online transactions were nearly impossible, and domestic transfers were slow and expensive. SadaPay challenged the status quo,” he said.
Today, a Pakistani anywhere in the world can sign up for an account from their living room. Virtual debit cards are issued instantly for online shopping, freelancers can accept international payments in seconds, and domestic money transfers are seamless and free. The Turkish fintech said on its LinkedIn account, the acquisition marked a significant strategic expansion into the Middle East and South Asia markets.
Founded in 2019, the Pakistani firm quickly became one of the fastest growing EMIs globally, reaching one million users in a record time. Today, the company, with a range of features including P2P money transfers, debit cards and payment products, processes $1.5 billion in annual payment volumes. “It was also the first institution to introduce a numberless debit card in the Middle East and Asia region.”
Published in The Express Tribune, June 1st, 2024.
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